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Novagold Resources Inc New (TSE:NG)
TSX:NG
RESEARCH TOOLSreports
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Novagold Resources New
(TSX:NG)
40Underperform
Novagold Resources New (NG) vs. S&P 500 (SPY)
Market Cap
$1.90B
Dividend YieldN/A
Average Volume (3M)465.67K
Price to Earnings (P/E)―
Beta (1Y)1.58
Revenue GrowthN/A
EPS Growth2.34%
CountryCA
Employees14
SectorBasic Materials
Sector Strength59
IndustryGold
Share Statistics
EPS (TTM)-0.18
Shares Outstanding334,646,580
10 Day Avg. Volume718,750
30 Day Avg. Volume465,673
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.81
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.46Price Target Upside13.54% Upside
Rating ConsensusHold
Number of Analyst Covering2
Novagold Resources New Business Overview & Revenue Model
Company DescriptionNovaGold Resources Inc. (NG) is a precious metals company primarily focused on the exploration and development of mineral properties in North America. The company's core asset is the Donlin Gold project, located in Alaska, which is one of the largest undeveloped gold deposits in the world. NovaGold is committed to advancing this project towards production in partnership with Barrick Gold Corporation.
How the Company Makes MoneyNovaGold Resources Inc. primarily makes money through the exploration and development of its key gold asset, the Donlin Gold project. Revenue generation for the company is expected to come from the eventual production and sale of gold extracted from this project. The company currently relies on strategic partnerships, most notably with Barrick Gold Corporation, to share the costs and risks associated with developing such a large-scale mining operation. Until production begins, NovaGold's financial strategy involves securing funding from investors and partners to continue its development activities and maintain operational stability.
Novagold Resources New Financial Statement Overview
Summary
NovaGold Resources Inc. faces severe financial challenges with no revenue generation, continued operational losses, and a highly leveraged balance sheet. The negative equity and cash flow issues indicate significant financial distress, posing substantial risks to sustainability and future growth.Income Statement
The company has reported no revenue over the years, indicating a lack of operational income. Consistent negative EBIT and net income reflect ongoing operational losses without any sign of profitability. The company shows deteriorating financial health with increasing losses, as evidenced by the negative gross profit and escalating EBIT and net income losses.15
Very Negative
Balance Sheet
The balance sheet reveals a concerning financial position with negative stockholders' equity in the latest period, indicating liabilities surpass assets. High total debt relative to negative equity signifies significant financial risk. The negative equity ratio and worsening debt-to-equity ratio underscore a highly leveraged and unstable financial standing.10
Very Negative
Cash Flow
Cash flow statements show persistent negative operating cash flow, highlighting challenges in generating cash from operations. The free cash flow is also negative, indicating insufficient cash to cover capital expenditures and operational needs. The company's cash position is deteriorating, suggesting financial instability and potential liquidity issues.20
Very Negative
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| 0.00 | -7.00K | -7.00K | -7.00K | -15.00K | EBIT |
| -21.78M | -48.27M | -36.84M | -33.24M | -26.81M | EBITDA |
| -21.77M | -45.83M | -33.62M | -28.16M | -19.31M | Net Income Common Stockholders |
| -46.80M | -53.34M | -40.54M | -33.56M | -27.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 125.75M | 125.88M | 169.12M | 121.91M | 148.55M | Total Assets |
| 133.29M | 159.19M | 198.85M | 224.44M | 245.84M | Total Debt |
| 137.55M | 124.63M | 116.13M | 110.41M | 103.79M | Net Debt |
| 91.80M | 60.75M | 25.01M | 49.51M | 36.24M | Total Liabilities |
| 141.51M | 129.29M | 120.57M | 113.71M | 107.88M | Stockholders Equity |
| -8.22M | 29.90M | 78.28M | 110.73M | 137.95M |
| Cash Flow | Free Cash Flow | |||
| -7.79M | -12.37M | -9.66M | -10.02M | -6.13M | Operating Cash Flow |
| -7.79M | -12.37M | -9.86M | -10.02M | -6.13M | Investing Cash Flow |
| -10.33M | -12.36M | 40.39M | 4.72M | 53.86M | Financing Cash Flow |
| 0.00 | -2.12M | -731.00K | -1.65M | -1.20M |
Novagold Resources New Technical Analysis
Positive
5.69
Price Trends
4.64
Positive
4.68
Positive
5.08
Positive
Market Momentum
0.48
Negative
60.88
Neutral
61.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NG, the sentiment is Positive. The current price of 5.69 is above the 20-day moving average (MA) of 4.76, above the 50-day MA of 4.64, and above the 200-day MA of 5.08, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 60.88 is Neutral, neither overbought nor oversold. The STOCH value of 61.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NG.
Novagold Resources New Risk Analysis
Novagold Resources New disclosed 29 risk factors in its most recent earnings report. Novagold Resources New reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Novagold Resources New Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$2.40B | 17.66 | 27.15% | ― | 67.54% | ― | |
70 Neutral | $1.85B | 17.10 | 4.83% | 3.15% | 10.16% | ― | |
68 Neutral | C$2.04B | ― | -11.06% | 4.22% | 44.74% | -194.56% | |
63 Neutral | C$1.75B | ― | -35.39% | ― | 13.00% | 45.15% | |
49 Neutral | $1.95B | -1.37 | -21.43% | 3.74% | 0.84% | -29.84% | |
46 Neutral | C$1.65B | ― | -3.92% | ― | ― | 1.89% | |
40 Underperform | $1.90B | ― | 96.21% | ― | ― | 2.34% |
* Basic Materials Sector Average
Performance Comparison
TSE:NG
Novagold Resources New
5.69
1.52
36.45%
TSE:SEA
Seabridge Gold
16.50
-4.24
-20.44%
TSE:CG
Centerra Gold
8.82
0.37
4.38%
TSE:WDO
Wesdome Gold Mines
15.98
5.82
57.28%
TSE:ORA
Aura Minerals
27.77
17.84
179.66%
TSE:AAUC
Allied Gold Corporation
5.32
1.88
54.65%
Novagold Resources New Earnings Call Summary
Earnings Call Date:Apr 01, 2025
(Q1-2025)
| % Change Since: 35.48%|
Next Earnings Date:Jun 24, 2025
Earnings Call Sentiment Positive
The earnings call presents a generally positive outlook with strong asset potential, financial stability, and significant progress in permitting and community engagement. However, ongoing litigation and delays in advancing to a feasibility study pose challenges. The company enjoys substantial institutional support and is well-positioned financially.Q1-2025 Updates
Positive Updates
Strong Gold Asset and Production Potential
The Donlin project in Alaska boasts almost 40 million ounces of gold with a high grade of two and a quarter grams, offering a production potential of over a million ounces a year, which is twice the industry average.
Permitting Progress
Federal permits are secured and state permits are nearly complete, with only the tailings dam permit remaining. This demonstrates significant progress in the rigorous U.S. permitting process.
Robust Financial Position
NovaGold maintains a strong treasury with $93 million in cash and term deposits, ensuring the company is well-positioned to fund its activities for the coming years.
Community and Stakeholder Engagement
NovaGold continues to engage with local communities and stakeholders, providing financial assistance for local infrastructure and supporting community events.
Safety and Sustainability Achievements
The Donlin project has maintained a record of no lost time accidents for over a decade, highlighting NovaGold's commitment to safety and sustainability.
Shareholder and Institutional Support
Over 70% of shares are held by top institutional investors, showcasing strong backing for NovaGold's long-term development vision.
Negative Updates
Litigation Challenges
Federal litigation is ongoing regarding the 404 permit, requiring supplemental studies for the tailings dam, which could delay the project timeline.
Delays in Project Advancement
The decision to advance to a full bankable feasibility study, estimated at $80 to $100 million and taking two years, has not been made yet, leading to potential delays in project development.
High Refractory Resource
The Donlin ore body is largely refractory, requiring complex processing methods such as flotation and autoclave treatment, which adds to the project's complexity and cost.
Company Guidance
During the first quarter of 2025, NovaGold Resources Inc. provided detailed guidance on the Donlin Gold project in Alaska. The project is anticipated to produce over a million ounces of gold annually, with a grade of 2.25 grams per ton, significantly exceeding industry averages. The company's budget for 2025 is $43 million, with $21.5 million allocated to Donlin Gold and $16 million for corporate general and administrative expenses. NovaGold's treasury remains robust, with $93 million in cash and term deposits, ensuring ample funding for ongoing activities. The first quarter saw a decrease in net loss by $1.2 million compared to the previous year, attributed to lower stock-based compensation and Donlin Gold expenditures. The company initiated a 15,000-meter drilling program in March to enhance mine planning and support an updated feasibility study, while also focusing on securing necessary permits and engaging with stakeholders to advance the project.Novagold Resources New Corporate Events
M&A TransactionsShareholder MeetingsBusiness Operations and Strategy
NOVAGOLD Sets Date for 2025 Virtual Annual Shareholders Meeting
Positive
Apr 30, 2025
NOVAGOLD RESOURCES INC. announced that its 2025 Annual General Meeting of Shareholders will be held virtually on May 15, 2025. Shareholders will have the opportunity to vote on various matters, including the election of directors and executive compensation. The meeting will also feature a presentation by the company’s leadership on recent achievements, including a transaction to acquire Barrick Gold’s 50% interest in the Donlin Gold project, and the outlook for the rest of the year. The virtual format is intended to enhance accessibility and reduce the carbon footprint, reflecting the company’s commitment to sustainability.
Spark’s Take on TSE:NG Stock
According to Spark, TipRanks’ AI Analyst, TSE:NG is a Neutral.
NovaGold Resources faces significant financial hurdles, with no revenue and negative equity posing major risks. Despite this, the stock shows strong technical momentum, though it may be overbought. Positive guidance on the Donlin Gold project and a strong cash position support its potential. Nevertheless, ongoing litigation and project delays remain key concerns, impacting the stock’s attractiveness.
To see Spark’s full report on TSE:NG stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.